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Second Charge Bridging Loans

Raise capital against property you already own, without disturbing your first charge.

Loans from £25,000 to £500,000
Up to 75% loan-to-value
Property values from £75,000
or call 0204 628 0990
THE APPROACH

A second charge is a structuring decision, not a fallback.

A second charge bridging loan sits behind your existing mortgage rather than replacing it. That matters more than it sounds. If your first charge is on a rate you would not get again today, or carries an early repayment charge you would rather not trigger, refinancing the whole thing to release capital is an expensive way to solve a short-term problem. A second charge leaves the first facility untouched and raises what you need against the equity above it.

Most of our experience is on the lender side rather than the broker side, and second charges are where that shows. Lenders assess these cases on the combined position across both charges, the strength of the exit, and whether the first-charge lender will consent. We work through all three before the file is submitted, not after, which is why our second charge cases tend to complete rather than stall in consent chasing.

Whether you are raising capital for a purchase, restructuring an expiring facility, funding works, or bridging a gap before a sale or refinance, we will look at the underlying case rather than the surface of the file. We accept multiple exit strategies, because projects rarely run exactly to plan and the finance should fit the project rather than the other way round.

Two of our published deals are second charges: a £776,905 second charge bridging refinance on a 9-flat residential development, placed after most of the broker market had already walked away, and a £308,497 second charge bridging loan held together to completion across a CCJ, a Land Registry application and slow lender consent.

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We will come back quickly, usually the same day. If you would prefer to speak to us now, please call 0204 628 0990.

WHAT SETS US APART

Four things that change the outcome.

The differences that decide whether a case completes or quietly stalls in committee.
01All credit consideredAdverse credit, CCJs and complex histories are assessed on the underlying case, not filtered out by the credit file.
02Flexible repaymentPay interest monthly or roll it up to the end of the term. Retained interest available where the cashflow needs it.
03No early repayment chargesRepay whenever the exit lands, with no penalty. A £245 discharge fee is the only cost of exiting early.
04Nationwide coverageEngland, Scotland, Wales and Northern Ireland, across residential, buy-to-let, commercial and mixed-use security.
WHAT WE HELP WITH

Cases we look at every week.

01Capital raising against owned property
02Auction purchases and deposit funding
03Refinancing an expiring bridge
04Funding refurbishment or works
05Business and tax liabilities
06Chain-break and time-critical purchases
07Restructuring behind a first charge you want to keep
TAKE THE NEXT STEPGet expert guidance on second charge bridging loans.
CLIENT EXPERIENCE
“I was in urgent need of funds to secure a plot of land at auction, with strong potential for planning gain. Time was critical, and the team worked quickly to arrange a second charge loan against my residential property. The loan was structured over a 12-month term at a very competitive rate, with interest retained, which gave me the flexibility I needed. From start to finish, everything was completed within just four weeks, allowing me to secure the purchase on time. I couldn’t be happier with the service and efficiency provided.”

Olumide Olutunde

Hiran, co-founder and director of Credco
WHY CREDCO
“Second charges live or die on the consent, and the consent is the part most brokers leave to chance. Getting the first-charge lender comfortable is a conversation, not a form. We start that conversation before the case is submitted, because a second charge that stalls waiting on consent is a deal the borrower loses to the clock, not to the credit.”

Hiran, Co-Founder & Director, Credco

MEET THE TEAM →
FREQUENT QUESTIONS

The questions we get asked most.

If yours is not here, ask us directly. We will give you a straight answer, including when the answer is no.

What is a second charge bridging loan?A short-term loan secured against a property that already has a mortgage on it. The existing lender keeps the first charge; the bridging lender takes a second charge behind it. It lets you raise capital against your equity without refinancing or repaying the first facility.
Why take a second charge rather than refinancing the first?Usually cost. If your first charge is on a rate you could not get today, or carries an early repayment charge, refinancing the whole facility to release capital is an expensive route to a short-term outcome. A second charge leaves the first mortgage intact.
How long does a second charge bridging loan take?Typically two to four weeks. The variable is rarely the bridging lender; it is how quickly the first-charge lender issues consent to the second charge. We start that process early, which is the main reason our cases tend to complete on schedule.
Do I need consent from my existing lender?Yes, in almost all cases. The first-charge lender has to formally consent to a second charge being registered behind them. Some lenders turn this round in days, others take weeks and occasionally issue it with incorrect wording that has to be reissued. Handling that properly is a large part of what we do on these files.
Can I get a second charge with adverse credit?Often, yes. We have placed second charges for borrowers with CCJs and complex credit histories. The lender is looking at the security, the combined loan-to-value position and the credibility of the exit. A difficult credit file makes the case harder to place, not impossible.
How do I repay it?Monthly interest payments, or roll the interest up and settle at the end of the term. Retained interest is available where cashflow through the project is tight. We accept multiple exit strategies, typically a sale, a refinance onto a term facility, or both running in parallel.
Are second charge bridging loans regulated?The loans we arrange are for business or investment purposes, which places them outside FCA regulation and allows for more flexible terms. Second charge loans taken for personal purposes on a borrower's own home fall under FCA regulation and are assessed differently. We will tell you which side of that line your case sits on at the first conversation.
What are the costs?Interest, a lender arrangement fee, valuation and legal costs, and our broker fee. There are no early repayment charges; a £245 discharge fee applies on redemption. We set out the full cost of the facility before you commit, including what it costs if the exit takes longer than planned.
RELATED READINGDeals we have placed →Case studies with the figures and the structure.What we are seeing →Market views and regulation from the team.
A SELECTION OF THE LENDERS WE WORK WITH
Allica BankBarclaysCastle Trust BankHSBCLloyds BankMetro BankShawbrook

Ready to take the next step?

Tell us what you are raising against and what the exit looks like. We will tell you honestly whether a second charge is the right route.